UNIVERSITY OF CHICAGO MEDICAL CENTER

In December 2009 the State of Illinois and two whistleblower-relators represented by the Cohen Law Group entered into a $7 million landmark settlement with the University of Chicago Medical Center (UCMC) to settle claims alleging that the UCMC Children’s Hospital violated Illinois law by improperly billing Medicaid for services provided in the neonatal intensive care unit (NICU). The Illinois Attorney General’s investigation, prosecution and ultimate recovery was started after the relators—two longtime NICU nurses—filed a whistleblower lawsuit alleging that the NICU had violated Illinois licensing regulations by systematically placing two high risk neonatal intensive care babies in a bed space licensed for one baby, an egregious practice known as “double-bunking."  The relators’ lawsuit alleged that the UCMC placed these high-risk babies at further risk by systematically double-bunking and overcrowding the NICU from at least 1997 through 2005.

Under the unique settlement mechanism negotiated by the State of Illinois and the relators, the Illinois Attorney General will disburse the settlement money to healthcare facilities that serve indigent women on the South Side of Chicago. In recognition of the substantial contribution made by the nurses and their counsel, the State of Illinois authorized a 21 percent relator award, one of the highest awards given to relators under the Illinois qui tam statute.

Joint Amended Complaint

Settlement Agreement

Judge’s Order Denying Defendant’s Motion to Dismiss

Settlement Press Release

View the ABC news report featuring Attorney Steven H. Cohen